The Davenport real estate market continues to produce moderate gains in 2016. Although still below the national average, the first-half of the year experienced slight bumps in both home prices and appreciation rates. Prices for Davenport real estate are up from a year ago, but growth slowed during the first six-months of 2016. For homeowners and investors, however, gains in the last three years have extended the trend of positive price growth since the recession.
Factors influencing the Davenport housing market in 2016 include the local economy, home affordability and new housing construction. Other components impacting the market consist of foreclosures and REO properties, which have produced an array of investor opportunities in Davenport. Moving forward, the Davenport real estate market should see decent gains in the second-half of 2016.
Davenport, IA Real Estate Market Statistics:
In comparison to the national average, home appreciation and total equity gains remain low for Davenport real estate. One-year and three-year appreciation rates were 1.5 percent and 0.6 percent respectively during the second quarter. While gains remain largely below the national average, appreciation rates are on an upward trend — rising 0.9 percent from year three to year one. For those considering Davenport real estate investments, the following highlights appreciation gains in previous years:
- Homes purchased in the Davenport, IA housing market one year ago have appreciated, on average, by $3,940. The national average was $14,963 over the same period.
- Homes purchased in the Davenport, IA housing market three years ago have appreciated, on average, by $7,266. The national average was $46,878 over the same period.
- Homes purchased in the Davenport, IA housing market five years ago have appreciated, on average, by $18,083. The national average was $82,353 over the same period.
- Homes purchased in the Davenport, IA housing market seven years ago have appreciated, on average, by $24,732. The national average was $77,054 over the same period.
- Homes purchased in the Davenport, IA housing market nine years ago have appreciated, on average, by $30,244. The national average was $31,126 over the same period.
Total home equity continues to fall short in comparison to the rest of the country. On average, homes in Davenport have appreciated by $3,940 in the past year, while the national average achieved one-year gains of $14,963. Despite lower-than-expected gains, price appreciation and principle payments in the last three years have boosted total equity growth since the recession. Additionally, the last nine years have experienced consecutive gains in home equity, with homes in year nine appreciating by $30,244 — its largest total in the last nine years. Low home prices combined with rising appreciation rates could see an influx in Davenport real estate investing in the coming years.
Another aspect to consider with real estate investments are foreclosures. There were 437 properties in some stage of foreclosure during the month of November, according to RealtyTrac. That represents a decline of 27 percent from the previous month, but 37 percent more than the same period last year. In terms of REO properties, the Davenport real estate market witnessed 40 percent less in November compared to the previous month. In comparison to this time last year, the number of REOs increased 50 percent. From an investor’s perspective, the rate of foreclosures in Davenport is an aspect to consider moving forward.
Davenport, IA Real Estate Market Summary:
- Current Median Home Price: $125,500
- 1-Year Appreciation Rate: 1.5%
- 3-Year Appreciation Rate: 0.6%
- Unemployment Rate: 5.6%
- 1-Year Job Growth Rate: -3.0%
- Population: 102,157
- Median Household Income: $45,424
Davenport, IA Real Estate Market (2016) — Q2 Updates:
Slow and steady remains the theme for the Davenport real estate market in the first-half of 2016. The median home price for Davenport real estate was $125,500 during the second quarter, compared to the national average of $239,167. Prices are up from a year ago, but price growth is slowing. One-year and three-year appreciation rates were 1.5 percent and 0.6 percent during the second quarter, lower than the national average. For Davenport real estate investors and homeowners, however, gains in the last three years have extended the trend of positive price growth after the recession.
Like most markets, the local economy played a role in the health of the Davenport real estate market in 2016. Employment continued to decline during the second quarter, as Davenport’s unemployment situation was worse than the national average. The unemployment rate was 5.6 percent during Q2, compared to 4.9 percent achieved by the rest of the country. Furthermore, job growth in Davenport remains stagnant, as one-year job growth in Davenport was -3.0 percent during the second quarter, whereas the national average experienced 1.9 percent in growth. That said, local employment growth in Davenport is poor and needs to improve.
Home affordability remained strong suit in 2016 for the Davenport housing market. Homeowners paid 5.8 percent of their income to mortgage payments in the second quarter, whereas the national average paid an astounding 15.8 percent. Compared to its historical average of 8.0 percent, home affordability for the Davenport housing market continues to improve. Conversely, new housing construction remains low. The current level of construction is 0.4 percent below the long-term average, with single-family housing permits dropping to -1.1 percent, compared to the national average of 10.6 percent. Construction is down from last year, but appears to have bottomed.
According to the National Association of Realtors (NAR), the Davenport real estate market is expected to see weaker price growth in the next 12 months compared to the rest of the U.S. The NAR predicts Davenport real estate to grow by 2.8 percent, compared to the national average of 3.6 percent. Despite lower expectations, the Davenport real estate market continues to make steady gains in 2016. That said, the trend should continue in the second-half.
